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Table of Contents





Abstract. x


1.0         Introduction. 1

1.1         Problem.. 3

1.2         Revenue Model 3

1.3         Aim and Objectives. 4


2.0         Literature Review.. 6

2.1         History of E-commerce. 6

2.1.1          International E-Commerce statistics. 7

2.1.2          Customers. 7

2.1.3          Logistics. 8

2.1.4          Payment. 8

2.1.5          Product delivery. 9

2.1.6          Shopping cart systems. 10

2.1.7          Online gift shops. 10

2.1.8          Design. 10

2.1.9          Information load. 10

2.1.10        Consumer needs and expectations. 11

2.1.11        User Interface. 12

2.1.12        Market Share. 12

2.2         Advantages and disadvantages of E-commerce. 12

2.2.1          Advantages of E-commerce. 12

2.2.2 Disadvantages of E-Commerce. 14

2.2.3          Product Suitability. 16

2.2.4          Aggregation. 17

2.2.5          Impact of reviews on consumer behaviour. 17


3.0         Project Design. 19

3.1         Data Model 19

3.2         Database Design. 21

3.3         Process Model 23

3.3.1          Functional Decomposition Diagram.. 24

3.3.2          Data Flow Diagram (DFD). 25


4.0         User Interface Design. 31

4.1.       Implementation Technologies. 31

4.2.       Internet Information Services (IIS). 31

4.3.       ASP.NET. 32

4.3.1.         Authentication in ASP.NET. 33

4.4.       MySQL Database. 33

4.5.       Integrating IIS and ASP.NET. 34

4.6         Integrating the Website and Database. 35

4.7         Web Page Programming Options. 36

4.7.1.         Server-side processing. 37

4.7.2.         Client-Side Processing. 40

4.8         Web Based Application Development. 41

4.9         Database Connectivity. 43

4.9.1          ADO.NET. 43

4.9.2          Connecting ASP.NET application to a Database. 48

4.10           The Shopping Cart Application. 50

4.10.1        Search for Books. 51

4.10.2        Registration. 51

4.10.3        User Details. 51

4.10.4        Shopping Cart. 52

4.10.5.      Place an Order. 52

4.10.6. Check Out. 52

4.10.7.      Purchase History. 53

4.10.8        Transactions in the Application. 54

4.11      Limitations and Future Development. 57


5.0 Summary of Result. 58

5.1         Conclusion. 59

5.2         Recommendation. 60

Reference. 61

Appendix. 65

Appendix 1. 65

Appendix 2. 69


Table of Figures

Figure 1 Entity Relationship Diagram (ERD). 20

Figure 2 Functional Decomposition Diagram.. 24

Figure 3 Customer – Browse Context DFD.. 25

Figure 4 Customer Browse Detailed DFD.. 26

Figure 5 Customer – Shopping Cart Context DFD.. 26

Figure 6 Customer – Shopping Cart Detailed DFD.. 26

Figure 7 Customer – Shopping Cart Detailed DFD.. 27

Figure 8 Customer – Shopping Cart Detailed DFD.. 27

Figure 9 Customer – Authentication – User Profile DFD.. 27

Figure 10 Authenticated User-Purchase Context DFD.. 28

Figure 11 Customer – Authentication – Purchase DFD.. 29

Figure 12 Customers – New User Registration DFD.. 30

Figure 13 Administrator Context DFD.. 30

Figure 14 Administrator Detailed DFD.. 30

Figure 15 Web page programming options. 36

Figure 16 Compiled server programs flowchart 37





The business-to- consumer aspect of an online shopping is the most visible business use of the World Wide Web. The primary goal of an online shopping site is to sell goods and services online. This project deals with developing an e- commerce website for online shopping. It provides the user with a catalogue of different goods and services available for purchase in the store. In order to facilitate online purchase a shopping cart is provided to the user. The system is implemented using a 3- tier approach, with a backend database, a middle tier of Microsoft Internet Information Services (MIIS) and PHP, and a web browser as the front end client. In order to develop an e- commerce website for online shopping, a number of Technologies must be studied and understood. These include multi- tiered architecture, server and client side scripting techniques, implementation technologies such as ASP.NET, programming language (such as C#, VB.NET), relational databases (such as MySQL, Access). This is a project with the objective to develop a basic website where a consumer is provided with a shopping cart application and also to know about the technologies used to develop such an application. This document will discuss each of the underlying technologies to create and implement an e-commerce website for online shopping.



1.0      Introduction

E-commerce is fast gaining ground as an accepted and used business paradigm. More and more business houses are implementing web sites providing functionality for performing commercial transactions over the web. It is reasonable to say that the process of shopping on the web is becoming common place.

The objective of this project is to develop a general purpose e-commerce store where any product (such as books, CDs, computers, mobile phones, electronic items, home appliances and any kind of goods) can be bought from the comfort of home through the Internet. However, for implementation purposes, this paper will deal with an online book store.

An online store is a virtual store on the Internet where customers can browse the catalogue and select products of interest. The selected items may be collected in a shopping cart. At checkout time, the items in the shopping cart will be presented as an order. At that time, more information will be needed to complete the transaction. Usually, the customer will be asked to fill or select a billing address, a shipping address, a shipping option, and payment information such as credit card number. An e- mail notification is sent to the customer as soon as the order is placed.

Business conducted through the use of computers, telephones, fax machines, barcode readers, credit cards, automated teller machines (ATM) or other electronic appliances (whether or not using the internet) without the exchange of paper-based documents. It includes activities such as procurement, order entry, transaction processing, payment, authentication and non-repudiation, inventory control, order fulfilment, and customer support. When a buyer pays with a bank card swiped through a magnetic-stripe-reader, he or she is participating in e-commerce.[35]

With popular trends and demands the concept of the Internet as the way forward to increase profit margins, companies new and old are creating websites here and there. The significance for retailers to having a web site is that a web site is informational and transactional in nature [43]. As the web site can be used for advertising, direct marketing, sales, customer support and public relations.

Significantly according to a study by McKinsey & Company and Salomon Smith Barney, retailers who sell to their customers through catalogues; stores, and online significantly emerge victorious amid the e-tail shake out [44].

With seasonal events and holidays, the Internet has become a tool for a quick and stress free method of shopping. Allowing retailers to cash in the profit from another useful shopping channel.Jupiter Research expects 2003’s online holiday sales to be led by new shoppers, resulting in a 21 percent increase over 2002 figures [45]. The growth in holiday sales is driven by factors such as, online bargains; time saving; avoiding holiday crowds and much more.

The top categories of Online Sales according to comScore Networks are:

  • Computer Hardware and Software
  • Apparel and Accessories
  • Office Supplies
  • Books, Music and Movies
  • Consumer Electronics
  • Home and Garden
  • Health and Beauty
  • Gifting
  • Sporting Goods
  • Toys and Games
  • Autos
  • Pets

Freedman argues that as more consumers are able to connect to faster Internet connections categories such as Apparel may experience growth [36].

1.1      Problem

After studying a number of shopping cart solutions online like Konga, Jumia, E-bay etc., I thought of introducing a new concept in the existing line of ShoppingCart solutions and it is the advertisement module. The existing products cover particular set of features and most of them share the standard features of online shopping. These products are off the shelf and take time to customize or difficult to alter. These have most common features like:

The admin is the vendor itself. An Admin is a person who owns/opens a store and uploads the catalogue of the products he deals in. These products can be software / hardware or products. Virtually any kind of product can be listed in the catalogue.

The other section relates to the customers and online visitors who make purchases of the available products.

There are a number of installable modules (components) that relate to the payment gateway and can be activated / deactivated on one click.

Limitations: There is no vendor / customer interaction like messaging.The vendor can’t earn revenue by putting advertisements.

1.2      Revenue Model

The revenue model is very simple; most of the solutions are freely available and come in self owned stores like osCommerce. These products can be installed on individual domain and many firms develop installable modules for these or customize as per user requirement. The provider does not take any revenue for sharing the software.

Some of the product providers charge commission as per the terms and conditions like pay per sale etc.

On the other hand, the vendor/admin, earns revenue from the catalogue for the products he deals in for freely available portal. A major source of revenue is through advertisement.

Advertisement: Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Normally it shows growing trend of consumers being more resistant to advertising messages and less open to marketers communicating with them without their expressed permission.Advertising models are continuously evolving due to an explosion in media outlets.

Advertising comes with several advantages which include:

  1. Attention
  2. Hold Interest
  3. Arouse Desire
  4. Obtain Action.

There are various ways of advertising but we talk about only website advertising.

In Today’s modern era website is good way to advertise your product, event, idea or brand. You can run your advertisements on websites with highly target traffic and likely buyers but you may also create entire websites dedicated to advertising your product.

1.3      Aim and Objectives

I have made an attempt to introduce a new concept of revenue earning and that is by placing advertisements on the portal on some of the specific areas of the portal pages. The advertising agency will be choosing the plan and pay as per the terms and conditions. On the other hand we can also charge Pay Per Click (PPC). The individual can place its business advertisement from the plans available.

The primary aim of this project is to demonstrate that with better interactive features in e-commerce web sites could improve sales for online retailers. The objectives of the project are as follows:

  • To learn about the Online Shopping industry.
  • To investigate potential problems with Online Shopping.
  • To create a prototype web site focusing on one of the many problems that arises within Online Shopping.
  • To evaluate the prototype with an existing online e-commerce website.

The classic tale of the tortoise and the hare, provided by Freedman, gave the inspiration that Online Shopping is one the main markets that need to be tapped in. Freedman’s prediction is that, slower starters or early laggards may prove to be some of the strongest categories online long term.




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